Question

In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August of 2011. $4,000 of cards were redeemed in September of 2011, $3,000 in October, $2,500 in November, and $2,000 in December of 2011. In 2012 an additional $1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with the August 2011 gift card sales would Lizzie get to recognize in 2011 and 2012?